GIFT CARD AND GIFT CERTIFICATE PURCHASE POLICY

Policy Statement

The university must adequately document the purchase and distribution of gift cards
and gift certificates purchased using university or grant funds.

Reason for Policy/Purpose

This policy is required for the effective communication of university policies regarding
the purchase of gift cards and gift certificates.

Who Needs to Know This Policy

All members of The University of Southern Mississippi community.

Website Address for this Policy

usm.edu/institutional-policies/policy-adma-pur-013

Definitions

Policy/Procedures

POLICY

Gift cards/gift certificates cannot be purchased with university funds for the purpose
of giving an employee a “gift” or “reward.” See Procurement policies regarding hospitality:
eduprod.usm.edu/institutional-policies/policy-adma-pur-000-002, eduprod.usm.edu/institutional-policies/policy-adma-pur-000-003.

Gift cards/gift certificates in this policy are for human research subjects only.

Gift cards/gift certificates cannot exceed $50. No USM employee may receive a gift
card. If an employee participates in a human research project, the payment must be
made through Human Resources. Non‐resident aliens must be compensated through Human
Resources.

The issuance of gift cards for research subjects must be approved by the Institutional
Review Board (IRB) prior to the purchase of the cards.

PROCEDURES FOR OBTAINING GIFT CARDS/GIFT CERTIFICATES

Permission must be obtained from the Procurement Card Administrator in Procurement
Services.

When permission is obtained, notification will be sent to the Office of Budget and
Tax Compliance.

The Office of Budget and Tax Compliance will contact the department regarding requirements
for keeping logs, reporting income, etc.

Approval from the IRB must be obtained prior to purchase of the cards.

Authorization for the Purchase of Gift Cards/Gift Certificates with Grant Funds

Whether Gift Cards/Gift Certificates are purchased with Procurement Cards or by some
other means, if purchased with Grant Funds approval must be obtained from Sponsored
Programs Administration (SPA).

Gift Cards must be specifically listed in the budget and approved by the sponsor.

Approval from the IRB must be obtained prior to purchase of the cards.

A copy of the IRB approval along with the Request for Gift Card Purchase form must
be submitted to SPA.

When permission is obtained, notification will be sent to the Office of Budget and
Tax Compliance.

The Office of Budget and Tax Compliance will contact the department regarding requirements
for keeping logs, reporting income, etc.

DEPARTMENTAL DOCUMENTATION

The Principal Investigator (PI) must keep a confidential log of the recipients. Form
available at https://eduprod.usm.edu/procurement-contract-services/p-card-manual-and-forms.
If social security number is not provided, the department chair must sign the form.

Updated logs must be provided to the Office of Budget and Tax Compliance on a monthly
basis.

The Office of Budget and Tax Compliance will report any taxable income for non‐USM
employees to Accounts Payable. This income typically occurs when the non‐employee
receives a total of $600 in a calendar year.

Log entries for USM employees and non‐resident aliens will be cross‐referenced with
information received by Payroll from the issuing department.

If logs are not submitted, the full amount of the gift cards/gift certificates will
be reported as income to the PI.

Gift cards must be kept under lock and key. The individual purchasing the gift cards
should not be the one distributing them.

Multiple cards cannot be issued to one individual for the same meeting participation.

Completely anonymous recipients must be approved by the IRB.

Any questions regarding the content of this policy should be directed to the Office
of Budget and Tax Compliance.

Review

The Director of Procurement and Contract Services is responsible for the review of
this policy every four years (or whenever circumstances require immediate review).

Forms/Instructions

Confidential log of recipients available at https://eduprod.usm.edu/procurement-contract-services/p-card-manual-and-forms